HS2: Brussels to northern England link ditched by Government

Monday 17 March 2014 11:55 BST

Plan scrapped: HS2

The Government today dramatically pulled the plug on a Euston to St Pancras railway linking the High Speed line from the North of England to Europe.

Transport Secretary Patrick McLoughlin axed the £700 million section after a report by new HS2 boss Sir David Higgins branded it a millstone around the project's neck. It should stop rows over one of the most bitterly disputed sections of the controversial route holding up the rest of the HS2 scheme.

Mr McLoughlin told MPs: "The link requires too many compromises in terms of impacts on freight, passengers and the community in Camden. I, therefore, intend to take the necessary steps to remove the link from the Bill and withdraw safeguarding as soon as possible."

Chief executive of lobby group Camden Town Unlimited, Simon Pitkeathley, had warned the link would tear through the heart of Camden Town, potentially destroying its world-famous markets and causing over a decade of disruption to the area.

Camden council leader Sarah Hayward said: “We are absolutely delighted with the decision to scrap this link and the decision is a victory for common sense. We have been calling for this for years and its just a shame the Government has taken to realise the problem.”

She added: “The Higgins report is a damning indictment for the project so far and shows that so many decisions pertaining to Camden have been wrong.”

The council claims 500 homes will be bulldozed by HS2 works and has called on the company to offer improved compensation terms for its residents which it says are getting a raw deal to others elsewhere in the UK having to relocate.

Mr McLoughlin's decision means the prospect of travelling by train from Birmingham to Brussels is over for the time being. Passengers will have to change at Euston Square and make their way to St Pancras and then on to Europe.

The Transport Secretary backed Sir David's proposal for a multi-million pound revamp of Euston station - the UK's sixth largest station and HS2's London terminus.

He also supported reinstating a former London landmark, Euston Arch, which was demolished in 1962.

Sir David, who delivered the Olympic Park on time and on budget, wants the HS2 London terminus to create new homes, shops and businesses to emulate the successes of adjacent transport-led redevelopments of St Pancras and King's Cross.

Mr McLoughlin said: "It is a significant opportunity to maximise the economic potential of the line and regenerate a site that has been neglected.

"It is also a significant opportunity to generate private sector investment that can reduce the overall burden on the taxpayer. I will, therefore, ask HS2 Ltd and Network Rail to develop more comprehensive proposals for the redevelopment of Euston, working with the rail industry and the local community. This work should include proposals for the Euston Arch which should never have been knocked down and which I would like to see rebuilt."

Boris Johnson today welcomed the Higgins report, saying recommendations for a new station at Old Oak Common - a semi-industrial 195-acre site north of Wormwood Scrubs and Westway - would create thousands of new jobs and homes.

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In his report, Sir David backs the Mayor's call for the new station to connect HS2 to London commuter services and the West Coast mainline, and help regenerate the area.

But Sir David insists that HS2 Ltd does not have the budget - thought to be at least £400 million - for the new station and the Department for Transport must pick up the tab.

The Mayor said: "For HS2 to work for UK plc it must work for London, so it's imperative that we get the design and the infrastructure right. It is a hugely important project and we cannot fudge our way through it.

"I’m delighted, therefore, that Sir David has taken on board many of the points I've raised, particularly the need for a proper redevelopment of Euston and recognition of the huge potential of Old Oak Common as a vital interchange and a springboard for regeneration."

The Mayor wants Old Oak Common to rival Waterloo station and is in the process of establishing an Olympic-style development agency to help create 20,000 new jobs and 90,000 new homes in the rundown area.

Sir David said the only way to reduce the £50 billion budget for HS2 is for MPs from all sides to back quicker construction. His report raises the possibility of completing the full line between London, Manchester and Leeds by 2029, three years earlier than planned.

MPs are currently debating a hybrid HS2 Bill in Parliament which is not expected to be passed until after next year's general election.

Shadow chancellor Ed Balls said he was satisfied Sir David was bearing down on costs but Mr Balls wants local authorities, business leaders and others across the North of England to consider whether HS2 is the best value to the region.

Cities of London and Westminster MP Mark Field said the Higgins report was "a sign of desperation" because the Government had failed to make the case for HS2.

He told Radio 4: "I think Ed Balls is already smiling at the prospect of potentially withdrawing Labour support just before the elections saying, 'Here's the pot of money that I'm going to go and spend', ".